What is severance payment in SAP PY-HK - Hong Kong, China?

SAP Term: severance payment

• Component: PY-HK

• Component Name: Hong Kong, China

• Description: Payment to which an employee is legally entitled if he or she has worked continuously for an employer for a period of not less than 24 months immediately prior to dismissal by reason of redundancy or lay-off. It is reduced by any gratuity or employer's non-mandatory contribution to a retirement scheme. An employee is eligible for either the severance payment or the long service payment but not both.

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• Key Concepts: 
  Severance payment is a type of compensation paid to an employee who has been laid off or terminated from their job. In the context of SAP PY-HK Hong Kong, China, severance payment is a statutory payment that must be made to an employee who has been dismissed or laid off due to redundancy or other reasons. 
  
  How to use it: 
  In SAP PY-HK Hong Kong, China, severance payment is calculated based on the employee's length of service and salary. The amount of severance payment is determined by the Employment Ordinance and the Labour Department. The employer must pay the severance payment within seven days of the employee's termination date. 
  
  Tips & Tricks: 
  When calculating severance payment in SAP PY-HK Hong Kong, China, it is important to take into account any additional benefits that may be due to the employee such as long service payments or gratuity payments. It is also important to ensure that all statutory requirements are met when making the severance payment. 
  
  Related Information: 
  For more information on severance payments in SAP PY-HK Hong Kong, China, please refer to the Employment Ordinance and the Labour Department website. Additionally, you can consult with a qualified legal professional for advice on how to calculate and make severance payments in accordance with local laws and regulations.